NZAOA marks fifth anniversary with drop in financed emissions

Since inception, the group's 88 members, managing $9.5trn in assets, have achieved an average annual reduction of at least 6% in financed greenhouse gas emissions. NZAOA said that the reductions align with the 1.5°C pathway outlined by the Intergovernmental Panel on Climate Change (IPCC), marking a significant step toward meeting global climate goals.

The announcement, made during New York Climate Week, comes ahead of the Alliance’s full fourth Progress Report, due in October. Since 2018, the Alliance has seen a steady decline in financed emissions, with cumulative reductions reaching 31% and 24% from the 2018 and 2019 base years, respectively. These results reflect the Alliance’s commitment to achieving the Paris Agreement targets of net-zero emissions by 2050.

Net Zero Investor’s ANNUAL CONFERENCE | 24-10-2024 | BOOK YOUR PLACE

In addition to cutting emissions, Alliance members have increased investments in climate solutions. Investments in this area have grown from 4% to 6% of total portfolios over the past year, representing $555bn in 2024. This growth reflects heightened ambition among members, with 81 of the 88 members reporting intermediate targets, covering 98% of the Alliance's assets under management.

Günther Thallinger, chair of NZAOA and board member at Allianz SE, emphasised the urgency of further action: “While we have made significant progress, the real economy continues to lag behind. Current policies put us on track for 2.4°C to 2.6°C of global warming by the end of the century, but it’s not too late to act. The cost of inaction far outweighs the investments required to transform the global economy.”

The Alliance’s Call to Action urges governments to introduce systemic interventions, equitable carbon pricing mechanisms, and clear policy frameworks to support the phase-out of coal-fired power and boost alternative energy sources.